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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110024-7

the New Economic System inaugurated in 1964, the regime sought with varying degrees of success to bring the supply of consumer goods more into accord with demand, and to improve quality. By the early 1970's, although shortages continued to plague some parts of the economy, the East German population enjoyed the highest standard of living in Eastern Europe.

1. Diet, clothing, housing, and consumer goods

The East German diet is generally adequate, but the food available is inferior in quality and variety to that in West Germany. There is relatively high consumption of fats and carbohydrates, together with beverages and luxury food items which have become more plentiful in recent years. Except for staple goods, which are very cheap in East Germany, the cost of food is about the same in both Germanies, but such items as butter, chocolate, and citrus fruit still remain quite expensive in East Germany. As a rule, the supply of animal protein-rich foods does not meet demand. The average caloric intake, however, compares favorably with that in West Germany and other Central European countries (Figure 15).

East Germans dress warmly and comfortably; clothing selection is becoming more stylish and the assortment more plentiful. The quality of clothing has improved, but nylon and other wash-and-wear fabrics cost more than comparable items in the West. Shortages of a number of items occur periodically, and the regime attempts to ameliorate those as they occur. For example, the regime moved promptly to deal with the shortage of women's and children's clothing that developed in the mid-1960's, and by 1968 there was a marked increase in availability of those items. Unfortunately such solutions tend to be short term and do not tackle the fundamental problem of accommodating socialist planning to the vagaries of consumer demand. The production of shoes continues to plague East German manufacturers who seem unable to provide a good supply of low-cost, quality footwear. The main complaint stems from the manufacturers' practice of displaying stylish shoes at fairs and exhibitions but failing to make them available to consumers. Durable kitchen appliances such as refrigerators and washing machines are scarce, but the supply of TV sets has occasionally exceeded demand since 1967. An automobile, on the other hand, remains a luxury out of reach to most East Germans. The waiting list is long and the price high for either a domestically produced automobile or one of the relatively few cars imported from abroad. In the year 1970 there were only 61 passenger cars for every 1,000 persons, far behind West Germany which had 228 passenger cars for a similar number of persons. A comparison of the work time required to obtain various consumer goods and services in East and West Germany in 1970 is shown in Figure 16. Figure 17 illustrates the relative levels of living in East Germany and selected other countries. It is clear that while East Germany still lags considerably behind West Germany in providing its citizenry with an assortment of high-quality consumer goods, the East Germans are far better off than their neighbors to the east.

Adequate housing is still a problem as per capita living space remains below prewar levels. Older dwellings, many still privately owned, are not well maintained because of shortages of materials and

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110024-7